Recent developments include Q2 2026 earnings highlights, property sales, development progress, loan modifications, and dividend declarations.

• Highwoods Properties reported Q2 2026 results with FFO and revenue surpassing prior period levels, and announced a rise in Q2 profit [N3][N4].
• The company held a Q2 2026 earnings call discussing operational performance and leasing trends [N2].
• During Q3 2026, Highwoods sold nine buildings in Richmond, Atlanta, and Raleigh for $85.2 million, recording gains of $13.6 million [S2].
• Construction commenced on site and infrastructure work at the Ovation mixed-use development in Nashville, planned for office, residential, retail, and hotel uses [S2].
• The 23Springs joint venture modified its construction loan to a delayed draw secured loan, extending maturity to September 2029 and increasing borrowing capacity to $370 million, with $325.6 million outstanding as of September 30, 2026 [S2].
• The Midtown East joint venture obtained a secured mortgage loan with two tranches totaling approximately $55.7 million, with interest rate hedges fixing the weighted average rate at 6.3% [S2].
• The company repurchased $3.1 million principal amount of unsecured notes due March 2027 during Q3 2026 [S2].
• Highwoods declared and paid a quarterly cash dividend of $0.50 per share consistently through 2025 and 2026, with the latest dividend declared on October 22, 2026 [S2].

The company’s diversified portfolio and active management of property acquisitions, dispositions, and developments provide operational flexibility. Recent successful property sales and development initiatives, such as the Ovation mixed-use project, demonstrate execution capabilities. Access to a large revolving credit facility with favorable terms and equity distribution agreements supports liquidity and capital needs. Consistent dividend payments reflect stable cash flow generation. The company’s use of FFO metrics and transparent disclosures facilitate investor understanding of operating performance.

Risks include potential deterioration in tenant financial conditions, challenges in leasing second generation and new space, and execution risks in development and acquisitions. Economic and office employment declines in key markets could reduce demand and rental income. Interest rate increases may raise debt service costs, while rising operating expenses could pressure margins. Liquidity constraints could arise if capital markets conditions deteriorate or asset sales do not occur as anticipated. The company’s dividend payments reduce available cash for other uses, and failure to maintain REIT qualification could have tax implications.

Highwoods Properties benefits from a diversified portfolio of office properties in multiple markets, including wholly owned and joint venture assets. Its use of FFO as a performance metric aligns with industry standards, facilitating comparability. The company’s access to substantial liquidity through a revolving credit facility and equity distribution agreements supports operational flexibility. Its experience in property development and disposition, along with established relationships in capital markets, contributes to competitive positioning. However, the office real estate sector faces challenges from economic cycles, leasing dynamics, and interest rate fluctuations, which can impact performance.

• Leasing and Market Risks: The company may face difficulties leasing or re-leasing office space, especially second generation or newly constructed buildings, potentially impacting rental income and occupancy rates.
• Development and Acquisition Execution: Development projects and acquisitions may not perform as expected or may require higher costs, affecting returns and cash flows.
• Economic and Employment Conditions: Declines in economic growth or office employment in the company’s markets could reduce demand for office space and negatively impact operating results.
• Interest Rate and Operating Expense Increases: Rising interest rates could increase debt service costs, and higher operating expenses could reduce profitability.
• Liquidity and Financing Risks: The company’s ability to meet liquidity needs depends on cash flows, financing availability, and asset sales; failure to refinance debt or raise capital on favorable terms could constrain operations.
• Dividend and REIT Qualification Risks: Cash dividends reduce available cash for other purposes; maintaining REIT status requires meeting distribution requirements and compliance with tax laws.
• Key Personnel Risk: Loss of key executive officers could adversely affect company operations and strategic execution.

• Highwoods Properties, Inc. is a real estate investment trust (REIT) focused on office properties and related real estate development and investment activities.
• The company operates through wholly owned and joint venture in-service properties, with a same property portfolio of 127 properties totaling 24.1 million rentable square feet as of September 30, 2026.
• Highwoods engages in property acquisitions, dispositions, development, and leasing activities, including mixed-use developments such as the Ovation project in Nashville.
• The company uses Funds From Operations (FFO) as a key performance metric, consistent with NAREIT definitions, adjusting net income for depreciation, amortization, impairments, and gains/losses on property sales.
• As of March 31, 2026, the company reported cash and cash equivalents of $32.4 million, revenue of $214.0 million, net income of $33.4 million, and basic and diluted EPS of $0.29 per share.
• Liquidity is supported by a $750 million unsecured revolving credit facility maturing in January 2028, with no outstanding borrowings as of September 30, 2026, and unused capacity of approximately $749.9 million.
• The company has equity distribution agreements allowing sales of up to $300 million in common stock on an as-needed basis.
• During Q3 2026, Highwoods sold nine buildings for $85.2 million, recording gains of $13.6 million, and commenced infrastructure work at the Ovation mixed-use development.
• The 23Springs joint venture modified its construction loan to a delayed draw secured loan with extended maturity to September 2029 and increased borrowing capacity to $370 million, with $325.6 million outstanding as of September 30, 2026.
• The Midtown East joint venture obtained a secured mortgage loan with two tranches totaling approximately $55.7 million, with interest rate hedges fixing the weighted average rate at 6.3%.
• The company repurchased $3.1 million principal amount of unsecured notes due March 2027 during Q3 2026.
• Highwoods declared and paid a quarterly cash dividend of $0.50 per share consistently through 2025 and 2026, with the latest dividend declared on October 22, 2026, payable December 8, 2026.
• The company anticipates available cash, cash flows, financing sources, and proceeds from non-core asset sales to be adequate for short-term liquidity requirements, operating expenses, interest, dividends, and capital expenditures.
• Risks disclosed include potential deterioration in customer financial condition, leasing challenges for second generation and new space, development and acquisition execution risks, economic and employment growth declines in markets, interest rate increases, operating expense increases, natural disasters, liquidity constraints, and key executive loss.
• The company’s critical accounting estimates involve acquisition price allocations, impairment assessments, and credit loss evaluations on lease receivables, requiring significant judgment.
• FFO for the nine months ended September 30, 2026, was $296.5 million, with FFO available for common stockholders of $294.8 million and FFO per share of $2.63.
• The company’s same property portfolio decreased from 143 properties (26.0 million rentable square feet) at December 31, 2025, to 127 properties (24.1 million rentable square feet) at September 30, 2026, due to property sales and portfolio changes.
• The company’s revolving credit facility interest rate is SOFR plus 85 basis points, with an annual facility fee of 20 basis points, and includes sustainability-linked rate adjustments.
• The company has a shelf registration statement on Form S-3 allowing indefinite offerings of common stock, preferred stock, and debt securities subject to market conditions.
• The company’s dividend policy is discretionary by the Board of Directors and influenced by taxable income projections, debt service requirements, rent changes, occupancy rates, operating expenses, capital expenditures, and financing cash flows.